Andrew S T

Hi, My feedback to you is that I was asking for your clarification - having searched the HMRC site and read guidance and examples I still was not clear on the specific condition. Just pointing me to a general page does not answer my question. I can see answers to other posts which receive clear specific answers. I am not sure why they can get them and I don't seem to be able to - I can't tell the difference in that we are all just seeking clarity on rules which are not easily understood. Perhaps you could explain somewhere what you are prepared to give an answer for and when you will not and just point folk to read the guidance again. Thank You.

Hi, ADS is the Additional Dwelling Supplement pertaining to the purchase of a second property and reclaimable subject to conditions. My question seeks clarification of the conditions. Specifically I am asking whether or not gifting my main property to my son within the 36 month period after purchase of a 2nd property, whereby the 2nd property then becomes my new main residence, is an acceptable basis upon which I can reclaim the Additional Dwelling Supplement paid on the purchase of that 2nd property. I referenced HMRC guidance which states disposal and then has gifting and selling as examples of a disposal. Thank you.

Thank you for the link to Tax when selling a property. I'd be grateful if you could answer my question on ADS. This is not asking for any financial advice but is seeking to appreciate what is an acceptable basis of reclaiming ADS. On buying a second property I understand I will pay ADS as I will at that point in time own the 2nd property and my main residence. If I later gift my main residence to my son within 36 months of that purchase , and at that point my 2nd property becomes my new main residence can I reclaim the ADS. I note that the guidance uses the term 'dispose' of a property within 36 months and then has 'gifting' as an example of disposing as well as 'selling' , so I just want to be clear that is the case. Thank you.

Sorry I mistyped the comments in parenthesis in the final sentence. It should have read ' (during which my main residence would become the new property)' on transferring my current home to my son. Thank you.

I have a further question about timing and reclaiming ADS. I understand that ADS is due on purchasing a property that is to be your new main residence if you have not yet sold your current main residence. I also understand this can be reclaimed if you sell your main residence within 36 months of the new property purchase date. The guidance text says 'dispose' of your main residence. Would a gift, where there is no money involved, transfer of my main residence to my son within this 36 months period (during which my main residence would be the new property) enable me to make a reclaim of ADS ? Thank you.

When I transfer my only house to my son and he eventually sells it , as a second home for him, how do we calculate the CGT due ? My plan is to move out on transfer and buy a smaller house more suited to my needs. Let’s say I paid A for the house, on transferring to him it was valued at B, and he then spent C on upgrading (e.g. kitchens, bathrooms, but not including decorations or furniture) and in due course it is sold for D. Is the CGT applicable calculated as being based on D - C, or is it ( D - B ) - C , or is it ( D - A ) - C. ? Are there any other factors which affect this such as timing or values involved ? Thank you.